Today, an anonymous collective of experts from world-class institutions — including Goldman Sachs, Columbia University, and Carnegie Mellon — unveilsndau, the world’s first digital currency that is untethered to any fiat, and yet kept stable through digitally built-in mechanisms, monetary policy and governance. Everyone is looking for the digital currency that will push crypto into the mainstream, including the Winkelvoss twins’ Gemini Dollar launched this week but each of them have massive flaws that ndau looks to address. The full release is below. Key points from the announcement include:

Addressing stablecoins’ pain points: ndau will address 23 pain points preventing cryptos from mainstream adoption, the top three being dependability, stability and governance.

ndau is unpegged to fiat: Any stablecoin pegged to, for example the USD, is not a good store of value as monetary policy dictates that the USD depreciates on an average of 2% every year.

ndau is governed by democratically elected Blockchain Policy Council: The Council has nine members, representing three distinct group of stakeholders that act like a central bank and make decisions for the ecosystem.

ndau price based on demand and where it sits on the S-curve: The S-curve is based on the theory of technological adoption and dictates the price at which one may purchase ndau.

$15 million of ndau has already been bought: ndau’s market cap currently sits at $40 million before it is publicly available.

BOSTON, MA — September 13, 2018 — Backed by COSIMO Ventures, Oneiro NA Inc. has announced the launch of ndau, the world’s first buoyant digital currency optimized for the long-term store of value. Oneiro completed its equity round from COSIMO Ventures earlier this year and has successfully sold privately nearly $15 million of ndau to date. Unlike stable coins, ndau is not pegged to fiat currencies or commodities. Rather, incentives and economic controls are built into the design of the ndau blockchain in ways that improve on both digital predecessors as well as traditional non-digital currencies. ndau features innovations which seek to provide a combination of digital governance, reduced volatility, value appreciation potential, and long-term dependability not found in existing cryptocurrencies.

Jim Kent, CEO of Oneiro, said: “While other cryptocurrencies have achieved an impressive rate of growth, their volatility has presented a barrier to mainstream adoption, warding off many institutional and retail investors from entering the market. In order to move towards acceptance of a decentralized digital monetary system, we must address the problems of governance, stability, and dependability that limit wider acceptance of cryptocurrencies, especially for a long-term store of value. We are thrilled to have built a truly resilient, global digital currency that will address these issues.”

ndau was initially formulated by the ndau Collective, a group of over 20 leading experts from world-class institutions including MIT, Columbia University, Carnegie Mellon, New York University, University of Chicago, and Goldman Sachs and who specialize in disciplines ranging from economics and monetary policy to cryptography and computer science. Typical stable coins are largely pegged to other currencies or commodities and are therefore subject to the influence of institutions that may not prioritize the interests of long-term holders. This leads to inflationary policies that erode value over time. By contrast, ndau, is governed by the Blockchain Policy Council (BPC), a group of digital delegates continuously elected by ndau holders that are held accountable to the interests of the entire ndau ecosystem.

While stable coins have features to push against price drops relative to fiat currencies, they are also limited in their ability to increase in value over time, making them a less optimal choice for long-term value storage compared to traditional assets. The BPC’s monetary policy fosters a pro-growth environment for the value of ndau while mitigating its downside volatility.

Ken Lang, a technology pioneer and an early member of the ndau Collective said: “When a group of early bitcoin enthusiasts came together a few years ago to map out the biggest limitations to wide adoption of cryptocurrencies, it was clear that those looking to use crypto for long-term value storage had problems that weren’t being addressed. ndau was created as a solution to these problems. The ndau Collective designed an ecosystem of decentralized participants and roles that use built-in incentives, checks, and balances to align interests properly and to protect the interests of all ndau holders fairly. These participants and roles, such as market makers, delegates, and endowment managers, work together to promote price stability without limiting growth – making it a better fit for long term value storage.”

ndau has economic incentives built into its ecosystem to encourage market interactions between ndau holders that tend to stabilize its price. ndau holders are rewarded based on duration of holding, ensuring that those holding it for its intended purpose are well served. ndau’s monetary policy automatically responds to market conditions in real time, releasing new ndau for sale from the endowment only when demand warrants, and according to a public schedule of target prices that rise exponentially over time. Proceeds from ndau sales flow into an endowment of assets, which serves as a source of liquidity to support ndau monetary policy. During market downturns, excess supply of ndau are taken out of circulation through both algorithmic mechanisms and by market makers, who buy back ndau at a dynamic floor price – similar to how central banks conduct open market operations, except more decentralized.

Robert Frasca, Managing Partner at Cosimo Ventures, said: “COSIMO Ventures is a team of highly experienced former entrepreneurs who invest in the tech space, and we currently focus on blockchain projects that have something really unique to offer. We surveyed the landscape of cryptocurrencies, and we invested in Oneiro because the ndau coin is leveraging blockchain technology to create a really groundbreaking buoyant currency. ndau challenges many of the assumptions held by current cryptocurrency thought leaders today, especially in the realms of digital governance and combining value growth with stability.”

The buoyant nature of ndau positions it as ideal for individual investors, institutions, and businesses alike looking to diversify into an asset that rewards long-term holding. In addition to ndau’s dynamic “guide rails” on price, further economic mechanisms automatically apply in every standard ndau blockchain transaction, providing “buoyant” market forces that dampen downside volatility and instead push upwards. The built-in incentives and economic structure of the ecosystem position ndau to better meet the needs of long-term crypto holders who want their investment to both mitigate volatility and appreciate in value.

Author: Jacob WolinskyJacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. -
Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold